Gross Capital Formation
Telephone: +44 (0)1633 455250
Frequency of release: Annually
Geographical coverage: UK
Geographical breakdown: UK and GB
This is the first publication of capital stock estimates since 2010. Estimates of capital stocks and consumption of fixed capital are now produced using a new methodology, as explained in the methodological changes to the estimation of capital stocks and consumption of fixed capital and impact of the methodological changes to the estimation of capital stocks and consumption of fixed capital articles published in June and July 2014. Users are strongly advised to read these articles and the background notes of this release.
All data referred to in this bulletin are annual estimates of chained volume measures (CVM), unless specified otherwise.
The United Kingdom’s (UK) net capital stock was estimated at £3.5 trillion at the end of 2012. Between 1998 and 2007, annual growth averaged at 1.9% but this slowed between 2008 and 2012 to 1.1%. Since 1997, estimates of net capital stocks increased by £750 billion (28%).
Consumption of fixed capital for the UK was estimated at £183 billion in 2012, an increase of £40 billion (28%) compared with 1997. However, the 2012 estimate remains £13 billion (6%) below the 2007 peak for this series, having fallen during the economic downturn.
Services industries held an estimated 79% of total net capital stocks at the end of 2012.
In 2012 the level of net capital stock per employed person fell by 1% following a slowdown in growth in 2010 and 2011.
This release contains analysis of the capital stock to output ratio, and ratio of capital stock to employment.
Capital stocks and the consumption of fixed capital are estimated using the Perpetual Inventory Method (PIM). The PIM models capital stocks and capital consumption from estimates of gross fixed capital formation (GFCF). Capital stocks and the consumption of fixed capital estimates are produced annually and used by ONS in the compilation of the UK National and Economic Accounts and Public Sector Finances. These estimates are used to monitor economic performance and inform monetary and fiscal policy decisions, as well as for international comparisons.
Additional estimates have been included in this release:
- gross capital stock to output ratio by industry (CP, table 1.5.1) and (CVM, table 1.5.2)
- ratio of gross capital stock to employment by industry (CP, table 1.6.1) and (CVM, table 1.6.2)
- net capital stock to output ratio by industry (CP, table 2.5.1) and (CVM, table 2.5.2)
- ratio of net capital stock to employment by industry (CP, table 2.6.1) and (CVM, table 2.6.2)
- consumption of fixed capital to output ratio by industry (CP, table 3.5.1) and (CVM, table 3.5.2)